Chairman’s statement
Introduction
Over the past 12 months, Econet undertook a significant reorganization of its Mobile Network Operator (MNO) and FinTech businesses, aimed at driving growth, efficiency, and innovation. This strategic transformation has yielded the intended benefits, positioning us for continued success. As we move forward, our focus remains on further consolidation and optimization, leveraging the strengths of our integrated businesses to deliver enhanced value to our stakeholders.
Environment and regulatory
We maintain a collaborative relationship with our regulators, Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ), the Reserve Bank of Zimbabwe (RBZ) and the Insurance and Pensions Commission (IPEC), ensuring compliance and adapting to evolving regulatory requirements. We remain engaged with our regulators to address all key issues and ensure constructive engagement.
Network infrastructure modernization
We successfully completed our core network upgrade in the second half of the financial year, strategically positioning the mobile network business to offer new, competitive and personalized services that anchors digital strategy of the business.
Our base station deployment efforts continued with the commissioning of 77 new sites, modernization of 546 radio access sites, and upgrading of 365 microwave access links. In addition, 60 5G sites deployed nationwide in the last quarter of the financial year strengthened our capabilities. The additional sites will ensure fast and seamless connectivity for homes and businesses while giving enhanced quality of service for our mobile broadband customers. To bring connectivity to underserved communities within the country, we deployed 10 lightweight, cost-effective base stations designed to provide mobile network coverage in remote rural areas.
We continue to invest in power upgrades, augmenting our national grid power capabilities to ensure reliable and efficient energy supply. These strategic investments enhance our operational resilience, support growing demand, and contribute to the overall stability of the national grid. In addition, we implemented power monitoring systems to oversee rectifiers and regulate battery performance at site level. These deployments are crucial to ensuring power autonomy for our batteries, and power efficiency.
Environmental, Social and Governance (ESG)
Our sustainability strategy focuses on meeting present needs in an equitable manner without sacrificing the needs of future generations. As we transform communities through mobile technology, empowering marginalized communities by bridging the digital divide and creating jobs, we remain aware of our environmental and social impact. Our strategic intent aims to create a positive impact on society and the environment aligned with international standards. We strive to continuously improve our ESG reporting, demonstrating our commitment to transparency and accountability. We endeavor to continue making a positive difference in communities through digital transformation.
By investing in education, health, and sustainable livelihoods for the vulnerable and talented young, we believe catalytic opportunities are created for a generation that will become drivers of sustainable development and transformation.
Financial performance
The financial results of the financial technology businesses acquired from EcoCash Holdings Zimbabwe Limited with effect from 1 March 2024, have been consolidated as subsidiaries into the Group results and are reported under the FinTech segment (mobile money and insurance). Performance details are outlined below under Financial Technology.
In accordance with the guidance issued by the Public Accountants and Auditors Board (PAAB), the Group applied International Accounting Standard 29 – Financial Reporting in Hyperinflationary Economies (IAS 29) in the preparation of the consolidated financial statements and adopted the consumer price index (CPI) as published by the Zimbabwe Central Statistical Office since the introduction of the Zimbabwe Gold currency on 5 April 2024. The financial performance review is based on inflation adjusted financial statements which are the primary financial statements. Historical cost financial statements have been presented as supplementary information. The Directors caution users of the financial statements on the usefulness of these reported financial statements, considering distortions that arise when reporting in a hyperinflationary economy.
Mobile network operations (MNO)
The segment recorded a year-on-year growth in data and voice traffic of 36% and 23% respectively. This growth was enabled by our modernized network, our ability to innovate and offer services that address the evolving needs of our customers.
Our earnings before interest, taxation, depreciation and amortization (EBITDA) margin softened to 47% from 48%. As we accelerate our digitization journey, we are adopting AI into our processes to enhance operational efficiencies and drive cost productivity.
The improved revenue performance enabled the business to continue investing in our network infrastructure, a catalyst to drive revenue growth and data usage which is forecast to continue on an upward trajectory in line with global trends. The capital expenditure for the year was 16% of revenue against a prior year comparative of 17%.
Financial technology (Fintech)
The mobile money business, EcoCash, recorded growth of 21% and 210% in transaction volumes and values respectively anchored by customer and wallet funding increases. EcoCash continued to actively drive initiatives to increase cash-in transactions and international remittance receipts. Efforts to onboard more payment partners are ongoing, as the business aims to establish a global payment platform that prioritizes convenience and value for customers.
The insurance businesses, Econet Insurance (Moovah), EcoSure and Maisha Health achieved a 35% year-on-year revenue growth. The life insurance business recorded a 51% Y-o-Y growth in revenue as it continues to offer digital bundled products for wider customer reach. Growth in revenue for the short-term insurance business against prior year was driven largely by new business acquisitions and endorsements which saw a 15% increase in motor and non-motor customers.
Dividend
The Company declared and paid a final dividend of 0.73 US cents per share for the year ended 28 February 2025 in respect of all the qualifying ordinary shares of the Company. The total dividends declared for the year amounts to 1.76 US cents per share.
Outlook
Looking ahead, leveraging innovation and deepening AI infusion into our operations to enhance operational and cost efficiencies will position the Group to grow, diversify our product and service offering and drive revenue growth whilst protecting our margins.
The Group will continue to make investments in digital transformation, embracing new technologies and actively pursuing strategic opportunities to enhance and complement our product portfolio. By harnessing the power of AI, we aim to create seamless experiences for our customers across all business segments.
Appreciation
On behalf of the Board, I would like to express my profound gratitude to our customers who continue to support our various businesses. Our staff and management deserve special mention and appreciation for their unwavering commitment to drive our businesses forward. I also wish to extend my appreciation to my fellow directors for their wise and constructive counsel.
By order of the Board of Directors
Dr. J. Myers
Chairman of the Board
30 May 2025
